Could Be A Mideast Break

August 3, 1988

Jordan's King Hussein threw a lot of chips in the air by giving up his claim to the West Bank, but they needn't fall into chaos.

The king's unexpected decision could be just the break needed to wind down the Palestinian uprising in the territories occupied by Israel. It might even be a step toward a Palestinian ''homeland'' -- however vaguely defined that still might be. Without it, prospects for permanent peace are next to zero.

The apparent reasons for the king's decision are simple enough. He has been under tremendous pressure from West Bank Palestinians who decry any suggestion that Jordan, which retained administrative and legal ties to the occupied area, can represent their interests in negotiating with Israel. They want to represent themselves. And they are backed in that position by other Arabs.

With one swoop, then, King Hussein has disengaged his country from a troublesome segment of Jordan's Palestinian population, shifted responsibility for sustaining the West Bank to the Palestinians and made himself a candidate for the renewed good graces of his Arab brethren.

Of course, in so doing he also has thrown the Arab residents of the West Bank into confusion. Those people use Jordanian money, Jordanian law and Jordanian textbooks. What happens to their Jordanian passports? What happens to the salaries

and scholarships provided by Jordan?

He also risks a final victory by the Israeli right wing, which wants Israel simply to annex all of the West Bank.

And his decision probably marks the end of Secretary of State George Shultz's plan for a Palestinian state in the West Bank confederated with Jordan. But that isn't the last available option.

Mr. Shultz still can promote an international conference geared toward creating autonomous rule for the Palestinians in the occupied territories. Only this time, he can press for the Palestinians to be allowed to represent themselves.

That would take a decision by Israel to allow elections in the West Bank and the Gaza Strip so that people can choose their own representatives. In all probability, that would mean some people with connections to the Palestine Liberation Organization would be chosen -- something many Israelis find impossible to swallow.

Nor should they unless the PLO leadership makes some concessions of its own. Now that Jordan has pulled out, the PLO has to prove it is up to the task of responsible negotiation.

It can do that with a simple renunciation of terrorist tactics and an unambiguous, unqualified acceptance of Israel's right to exist permanently and in peace. There is no prospect at all for a Palestinian homeland until the security of the Jewish homeland is first ensured.